Informa, UBM Deal Valued at $5.3 Billion; Formal Offer Due Feb. 13

Two of the largest global trade show organizers – Informa and UBM – unveiled last week they were in talks to possibly merge in a deal valued at $5.3 billion.

The merger would create a trade show juggernaut, easily taking the No. 1 spot as the largest global organizer worldwide.

A decade after a proposed deal in which UBM attempted to buy Informa fell apart, the combined companies would give Informa scale and specialization in events.

"It is clear that the B2B Market is moving to Operating Scale and Industry Specialisation,” said Stephen A. Carter, Informa’s CEO.

He added, “The Combined Group will have the reach and market capabilities to take full advantage of these trends."

Shareholders will receive 1.083 Informa shares for each UBM share and $2.26 in cash, valuing UBM at $13.30 a share, a 30-percent premium to the Jan. 15 closing price, Informa said.

The deal terms were announced Jan. 17 and Informa shares were down 10 percent to $9.79 per share, while UBM shares increased 10 percent to $12.22 per share.

Informa has until Feb. 13 to make a firm offer.

A detailed statement said: “The Combined Group will build on the respective strengths of Informa and UBM to meet growing customer demands for Brands and partners with international reach, specialist industry knowledge and an increasingly wide range of B2B services incorporating face¬to-face platforms and events, data analytics, targeted marketing services and trusted, reliable intelligence and research.”

Informa’s portfolio includes shows such as World of Concrete, Natural Products Expos East and West and Greenbuild in the U.S., while UBM owns Magic Market Week, the massive biennial fashion shows, as well as Black Hat Conference and Game Developers Conference.

The combined group would be owned 65.5 percent by Informa shareholders and 34.5 by UBM shareholders.

"This is the right moment to combine our strengths, enabling us to capture fully the long-­term growth opportunities in this attractive market, bringing benefits for customers and colleagues, as well as generating significant value for shareholders,” Carter said.

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